Key Takeaways
- Daily: Record transactions, categorize expenses, check bank feeds (15-30 minutes).
- Weekly: Analyze cash flow, send invoices, follow up on receivables (1-2 hours).
- Monthly: Reconcile accounts, generate statements, analyze results (2-3 hours).
- Quarterly: Estimated tax prep, category cleanup, catch-up tasks.
- Consistent small efforts prevent the year-end scramble that costs you money.
Most business owners don’t do bookkeeping consistently. They do it in bursts. Usually panic mode.
Tax season arrives. The CPA asks for financials. Suddenly there’s a frantic weekend of categorizing twelve months of transactions, hunting for receipts, and hoping the numbers make sense.
This approach costs money. CPAs charge $150-$400 per hour to clean up messy books. A year of neglected bookkeeping can easily add $1,500-$3,000 to your tax prep bill.
The better approach: small, consistent tasks that take less time total and produce accurate books year-round.
This checklist tells you exactly what to do and when. Print it. Post it by your desk. Check tasks off as you complete them.
Table of Contents
Daily Bookkeeping Tasks (15-30 Minutes)
Daily tasks are quick but essential. They keep you current and catch issues early.
| Task | Why It Matters |
|---|---|
| Check bank feeds for new transactions | Catch issues early, before you forget context |
| Categorize yesterday’s transactions | Easier when the purchase is fresh in memory |
| Save receipts (photo or scan) | Expenses over $75 need documentation |
| Record any cash transactions | These don’t auto-import from your bank |
| Send invoices for completed work | Faster invoicing = faster payment |
Check Bank Feeds
Log into your bookkeeping software. Look at what imported from your bank overnight. Make sure nothing looks wrong.
This takes 2 minutes. It catches unauthorized charges, duplicate transactions, and import errors before they pile up.
Categorize Transactions
Every transaction needs a category. Do this daily while the purchase is fresh.
That $247 charge from “ACME CORP DALLAS TX” is much easier to identify today than six months from now. Was it office supplies? Software? Who knows, by December.
Save Receipts
The IRS requires documentation for business expenses, especially those over $75.
Take a photo. Upload it to your receipt tracking system. Attach it to the transaction. Do this at the point of purchase, not at year-end when you’re digging through your email looking for confirmation emails.
Record Cash Transactions
Bank feeds capture bank and credit card transactions automatically. Cash doesn’t import.
That $150 you paid the contractor in cash? Record it manually. That $80 you spent at the office supply store with cash from your wallet? Record it.
Cash transactions are easy to forget. Make recording them a daily habit.
Send Invoices
If you completed work today, invoice for it today. Or tomorrow morning at the latest.
The longer you wait to invoice, the longer you wait to get paid. Many clients pay based on invoice age. Invoice promptly and you get paid promptly.
Weekly Bookkeeping Tasks (1-2 Hours)
Weekly tasks require slightly more time but maintain financial visibility.
| Task | Why It Matters |
|---|---|
| Analyze cash position | Know what’s actually available to spend |
| Check accounts receivable | Follow up on late invoices before they age |
| Check accounts payable | Plan upcoming payments, avoid late fees |
| Verify categorization accuracy | Catch mistakes before month-end |
| Back up data | Protect against software issues or data loss |
Analyze Cash Position
Look at your bank balance. Then look at:
- Pending incoming payments
- Bills due in the next 7 days
- Upcoming payroll
This tells you what’s actually available, not just what the balance says.
Check Accounts Receivable
Run an AR aging report. This shows who owes you money and for how long.
| Age | Action |
|---|---|
| Current (not yet due) | No action needed |
| 1-15 days past due | Polite reminder email |
| 16-30 days past due | Phone call or direct follow-up |
| 31+ days past due | Escalated collection process |
Following up at 7 days past due is more effective than waiting 60 days.
Check Accounts Payable
Know what you owe and when it’s due:
- Bills due this week
- Bills due next week
- Any past-due amounts
Pay on time. Don’t pay early unless there’s a discount. Batch payments to reduce transaction volume.
Verify Categorization Accuracy
Spot-check your recent categorization. Look for:
- Transactions in the wrong category
- Unclear descriptions you can now identify
- Personal expenses that accidentally hit business accounts
Weekly verification catches errors before they multiply.
Back Up Data
Most cloud software backs up automatically. But verify:
- Your data syncs properly
- You can export if needed
- No sync errors are pending
If you use desktop software, run a manual backup weekly.
Monthly Bookkeeping Tasks (2-3 Hours)
Monthly tasks close out each period and generate the reports that matter.
| Task | Deadline | Why It Matters |
|---|---|---|
| Reconcile all bank accounts | By the 15th | Catches errors, fraud, missing transactions |
| Reconcile all credit cards | By the 15th | Identifies personal charges, verifies accuracy |
| Generate P&L statement | By the 15th | Know if you’re profitable |
| Generate balance sheet | By the 15th | Know your financial position |
| Analyze cash flow | By the 15th | Understand where money actually went |
| Review expense trends | By the 15th | Spot unusual spending |
| File sales tax (if applicable) | Per state deadline | Avoid penalties and interest |
Reconcile Bank Accounts
Reconciliation is non-negotiable. It’s how you verify your books are accurate.
Process:
- Download your bank statement
- Compare the ending balance to your software
- Match each transaction
- Investigate and fix discrepancies
- Complete reconciliation when balances match
Time: 15-30 minutes per account.
If you’re not reconciling, you’re not really doing bookkeeping. You’re just entering data and hoping.
Reconcile Credit Cards
Same process as bank accounts. Additional check: look for personal charges that need to be removed from business expenses.
Generate Financial Statements
Run three reports:
Profit & Loss (Income Statement): Revenue minus expenses. Are you making money this month?
Balance Sheet: Assets, liabilities, equity. What’s your financial position?
Cash Flow Statement: Where cash actually went. Why does profit not match your bank balance increase?
For guidance on reading these statements, see our bookkeeping basics guide.
Analyze and Review
Don’t just generate reports. Look at them.
- Compare to prior month
- Compare to same month last year
- Look for unusual spikes or drops
- Note anything that needs investigation
File Sales Tax
If you collect sales tax, most states require monthly or quarterly filing.
Know your deadlines. File on time. The penalties for late sales tax filings are often steeper than income tax penalties.
Quarterly Bookkeeping Tasks (Half Day)
Quarterly tasks handle items that don’t need monthly attention but can’t wait until year-end.
| Task | Why It Matters |
|---|---|
| Prepare estimated tax data | Avoid underpayment penalties |
| Clean up “Ask My Accountant” items | Resolve unclear transactions |
| Physical inventory count (if applicable) | Verify records match reality |
| Review chart of accounts | Remove unused categories, add needed ones |
| Catch up on any missed tasks | Don’t let things snowball |
| Review profitability by service/product | Make informed business decisions |
Prepare Estimated Tax Data
If you make quarterly estimated tax payments, your CPA needs accurate profit data to calculate them.
Close your books promptly after quarter-end (April 15, June 15, September 15, January 15 deadlines).
Clean Up Unclear Transactions
That “Ask My Accountant” category? Quarterly is the time to resolve everything in it.
Research unclear transactions. Contact vendors if needed. Get every transaction properly categorized before the questions stack up.
Physical Inventory Count
If you carry inventory, physical counts verify your records match reality.
Count everything. Compare to your system. Adjust for:
- Shrinkage
- Damage
- Obsolescence
- Data entry errors
Review Chart of Accounts
Over time, you might have:
- Categories you created but never use
- Categories that should be combined
- New expense types that need their own category
Clean this up quarterly. A tidy chart of accounts makes categorization easier.
Catch Up
Behind on reconciliation? Categorization incomplete? Receipts unfiled?
Quarter-end is a natural deadline. Get current before moving forward.
Year-End Bookkeeping Tasks (Full Day)
Year-end closes out the fiscal year and prepares for tax filing.
| Task | Deadline | Why It Matters |
|---|---|---|
| December reconciliation | January 15 | Clean close |
| Verify all transactions recorded | January 15 | Nothing missing |
| Collect W-9s from contractors | January 15 | 1099 compliance |
| Prepare/file 1099s | January 31 | Legal requirement |
| Compile tax package | February 15 | Smooth CPA handoff |
| Close the books | After tax package | Lock the prior year |
December Reconciliation
Complete your final reconciliation for all accounts. This is your last chance to catch errors before the books close.
Verify Completeness
Before finalizing, verify:
- All December transactions are recorded
- All cash transactions are captured
- No bank feed imports are pending
- Intercompany transfers balance
Collect W-9s and File 1099s
If you paid any contractor $600 or more during the year, you must file Form 1099-NEC by January 31.
Collect W-9s before year-end. Chasing contractors for tax information in January is stressful and often unsuccessful.
Compile Tax Package
Organize everything your CPA needs:
- Final P&L and Balance Sheet
- Supporting schedules
- Prior year carryforward items
- Documentation for major transactions
- Vehicle logs, home office calculations, etc.
Clean, organized data means faster returns and lower CPA fees. For detailed guidance, see how to do bookkeeping.
Close the Books
After your tax return is filed, close the prior year in your software. This prevents accidental changes to historical data.
Entity-Specific Tasks
Different entity types have additional bookkeeping requirements.
S-Corps
If you’re an S-Corporation, add these to your tasks:
- Verify reasonable salary payments: Owner-employee compensation must be recorded as payroll, not distributions
- Separate shareholder distributions from salary: These have completely different tax treatments
- Track health insurance for >2% shareholders: These premiums get special handling
- Document shareholder loans: Any loans between you and the company need proper documentation
Partnerships
If you’re a partnership, add these:
- Track guaranteed payments: Partner compensation regardless of profit
- Maintain partner capital accounts: Each partner’s equity stake must be tracked
- Document contributions and distributions: Money in and out for each partner
- Track special allocations: Any profit/loss splits that differ from ownership percentages
LLCs (Single-Member)
For single-member LLC bookkeeping:
- Separate owner draws from expenses: Draws reduce equity, not profit
- Track capital contributions: Money you put into the business
- Document business vs. personal use: Especially for mixed-use assets like vehicles
The Printable Checklist
Copy this. Print it. Check off tasks as you complete them.
Daily (15-30 min)
☐ Check bank feeds
☐ Categorize transactions
☐ Save receipts
☐ Record cash transactions
☐ Send invoices
Weekly (1-2 hours)
☐ Analyze cash position
☐ Check AR aging
☐ Check AP aging
☐ Verify categorization
☐ Back up data
Monthly (by the 15th)
☐ Reconcile bank accounts
☐ Reconcile credit cards
☐ Generate P&L
☐ Generate balance sheet
☐ Analyze cash flow
☐ Review expense trends
☐ File sales tax (if applicable)
Quarterly
☐ Estimated tax prep
☐ “Ask My Accountant” cleanup
☐ Physical inventory count
☐ Review chart of accounts
☐ Catch-up tasks
Year-End
☐ December reconciliation
☐ Verify all transactions recorded
☐ Collect W-9s
☐ File 1099s
☐ Compile tax package
☐ Close the books
What Happens When You Skip Tasks
Skipping bookkeeping tasks doesn’t save time. It shifts time to later, when it’s harder and more expensive.
| If You Skip… | The Result |
|---|---|
| Daily tasks | 2-hour weekly catch-up |
| Weekly tasks | 6-hour monthly scramble |
| Monthly tasks | 20+ hour year-end nightmare |
| Year-end tasks | CPA charges $150-$400/hour to fix everything |
A year of skipped monthly reconciliation can easily create $2,000+ in CPA cleanup fees. That’s not a savings. It’s a very expensive loan.
Frequently Asked Questions
How long does monthly bookkeeping take?
For a business with 50-100 monthly transactions, expect 2-3 hours for monthly close. This includes reconciliation, financial statement generation, and basic analysis. More transactions or more accounts means more time. See our guide on monthly bookkeeping for detailed breakdowns.
What if I’m already behind on bookkeeping?
Start with reconciliation. Get your books to match your bank statements for the current month. Then work backward. Our catch-up bookkeeping services can help if you’re significantly behind.
Do I need to do bookkeeping every day?
Not necessarily. Daily is ideal for categorization because transactions are fresh. But weekly works if you’re consistent. The key is regularity. Bookkeeping done weekly is infinitely better than bookkeeping done once a year.
What’s the most important bookkeeping task?
Monthly reconciliation. If you only do one thing, reconcile your accounts. This catches errors, verifies accuracy, and confirms your books match reality. Everything else builds on this foundation.
Next Steps
You have the checklist. Now use it.
Post it where you’ll see it. Set calendar reminders for weekly and monthly tasks. Build the habits that keep your books clean.
If you’d rather hand the checklist to someone else, that’s a valid choice too. SDO CPA provides bookkeeping services that handle every item on this list, every day, every week, every month.
We close books within days of month-end. Your CPA gets clean data automatically. You get financial reports without the hours of work.
Schedule a bookkeeping assessment to see what this would look like for your business.